Shell’s Big Dip in Profits – And What It Means for Shareholders
Last Year’s Numbers in a Nutshell
- Annual earnings fell 36%, down to $15.3 billion (about £11.8 billion).
- In the fourth quarter, profits plunged 88% to just $871 million.
- The snap‑down was largely due to the company writing down the value of onshore natural‑gas fields in North America.
CEO’s Take on the Future
Ben van Beurden, Shell’s chief executive, stayed upbeat even after the numbers dropped:
“We’re still going to finish the $25 billion share‑buyback plan. The speed? That’ll depend on how the market looks and how much debt we’ve trimmed.”
Why the Sharper Hit?
- Impairment charges on North American gas fields took a big bite out of cash flow.
- Global oil and gas prices were on a steep decline, squeezing margins across the board.
What It Means for You
If you’re a shareholder, the good news is Shell keeps its promise about buying back shares. The bad news? The pace might slow if the market stays shaky.
Bottom Line
Shell’s profits took a nosedive, but the company’s strategy remains clear: keep buying back its own shares, just maybe at a slower tempo. Investors, keep an eye on the macro climate—because that’s the real game changer.
